Thursday, August 5, 2010

Procurement into the decision-making problems faced in China



Purchasing management may be the most did not fully leverage the commercial area, but it from executives to the position of decision-making the transition will go through a long process of natural fission.

Procurement into the decision-making problems faced in China

Wen / Liu Richard

Procurement management in the financial, strategic and operational aspects of a key role to play, yes company's short-and long-term performance of the main driving force, procurement management may be China's most fully leverage Wei Ling Yu role of the business.

In the area of finance, procurement and supply management can be a company to maximize the performance of the most effective way. Procurement of materials and services for a cost of 60% of the total cost structure of a typical manufacturing enterprise, if the profit margin is 10% of sales, procurement can bring savings of 5% profit growth of 30%; However, to achieve the same results will need to increase sales 30%.濡傛灉绠$悊灞傝冻澶熼噸瑙嗛噰璐妧鑳斤紝涓庝笂骞村悓鏈?%鐨勬垚鏈妭鐪佸苟涓嶆槸涓嶅垏瀹為檯鐨勭洰鏍囥? In fact, the difficulties faced by procurement and supply management company the best hope in achieving a major breakthrough performance, even in the selected range of products to reduce 30-40% of the cost.

In the strategy, procurement is to obtain the export market, as well as in the international market to achieve sales and profitability a key driver of sustainable growth.渚嬪锛屽涓?鍦ㄤ腑鍥芥湁鐢熶骇涓氬姟銆佹鍦ㄥ叏鐞冨競鍦哄姹傜珵浜夌殑鍒堕?鍜屽伐绋嬪叕鍙告潵璇达紝鍙戝睍涓?渚涘簲鑳藉姏寮虹殑涓浗褰撳湴渚涘簲鍟嗭紝鑰岃渚涘簲鍟嗙殑浜у搧鏃㈠湪鎴愭湰涓婂叿鏈夌珵浜夊姏锛屽張绗﹀悎瑗挎柟瀹㈡埛鐨勪弗鏍肩殑璐ㄩ噺鏍囧噯锛屾槸璇ュ叕鍙告垚鍔熺殑鍏抽敭鍥犵礌銆?br />
Finally, at the operational level, the procurement activities to achieve the perfect operation of the main attributed factor. Depend on the performance level of the supply base and supplier and buyer relationship, continuous innovation to provide customers with high quality products to achieve a high degree of delivery reliability, and control related budgets.

Bipolar model

The basis of sustainable development, procurement activities in the global competition plays an important role. Western world (USA, Europe) and Japanese companies have long realized the strategic importance of procurement management. However, they appeared in the issue of procurement polarization, resulting in two different procurement concept.

American / European model in this was identified as "market driven" model, its essence is dependent on the Shang in the global supply market competitiveness, many large industrial companies in the supply within the Shang Xuan Ze. Western buyers are skilled to carry out rigorous discipline based on the facts and tender, the company aims to select the most appropriate development and production requirements of the material suppliers. Very typical situation is, buyers often have regular procurement activities, challenges supply business situation, re-combination of traditional suppliers, hope the material He services procurement activities to achieve double-digit cost savings. Western buyers not hesitate to change the supply base, active use of the world economy is producing the structural advantages. The past five years, many large Western companies in China to open an international procurement center, why they want to re-supply base, using competitive cost structure with the perfect example. Of course, this can not be said price is the only selection criteria for Western companies, in fact, they are equal attention to all factors in procurement, and even more focus on quality, delivery reliability and product innovation. But it was also stated that if the cost / price have a significant breakthrough in the quality of services and products without any derogation of the case, the Western companies willing to take risks and be ready for new suppliers who bet. Buyer supplier relations with the West to maintain the appropriate distance, because they themselves do not identify this relationship is the medium-term or long-term.

Japanese companies use different purchasing patterns, known as the "relationship" model, the absolute focus on buyers and suppliers to establish long-term relationship between. According to this known as "Keiretsu" procurement methods, or sometimes in bilateral commercial reliance on a small part of the stock exchange based on the cross, the Japanese company has established a very close relationship between the supply base network. They are usually not tender, not by the adoption of new potential suppliers to challenge the practice of the existing suppliers. On the contrary, they are digging through existing suppliers to achieve the savings potential of the procurement cost. Their long-term suppliers and the manufacturing, engineering and quality departments with multi-functional team formed to continuously improve supply chain performance to achieve the purpose. In order to save costs and continuously improve product quality, these groups can be the basis for sustainable development re-engineering the procurement process.

We do not compare the merits of these two models, a number of companies are now two modes of absorption benefits of establishing a procurement organization. In some product development process and supply chain in close connection with the procurement project, the relationship between buyers and suppliers is an important factor in creating sustainable value, and more use of Japanese models and a number of suppliers with long-term partnership-type relationship. In other types of procurement activities, some of the same companies and suppliers using the practice to maintain a certain distance, when the supply market, the emergence of new attractive price point, they did not hesitate to change suppliers. In reality, success depends on the company purchasing the "static" approach of flexibility and adaptability, using various means, to apply to supply the market with different complexities and dynamics.

Puzzles tactical and strategic

In our view, the Chinese company is at the crossroads of these two concepts. One hand, they attach importance to the interaction between people, the implementation of the procurement Shique opportunism; on the other hand is the value of value of trust and relationships, which can only trust and relationship between the long-term buyer - supplier relationships established, and therefore they are ideal to include the procurement culture and in Western and Japanese models and values. But until now, China-based companies in the procurement of very small progress.

銆??鍦ㄦ煇绉嶇▼搴︿笂浠や汉濂囨?鐨勬槸锛屽ソ鍍忔湁鏃跺?涓浗鍏徃鍚稿彇浜嗕袱绉嶆ā寮忕殑鍔e娍銆?On the one hand, they are the same as the Japanese company has established the relationship between Keiretsu-type network, but do not use those established relationships with their suppliers not to work together to improve the performance of the whole supply chain, to their mutual benefit. On the other hand, often too much emphasis on business relations with suppliers have to bargain, and often regardless of quality, delivery reliability, innovation and sexual defects. The lack of world-class in China has established procurement capacity of the capital and effort is understandable, and easily explained by the following factors.

? The West / Japan and China in economic growth mode differences exist

Western power production and procurement capacity development is the product of slow growth of its economy. Early 70s of last century since the first oil crisis, Western countries have suffered low GNP (gross national product) growth of the bitter, and frequently face economic recession; Japan since the 90s of last century, has stood for 15 years at least zero growth economy, and even negative growth. In these very difficult economic conditions, only in all aspects of business operations to effectively increase productivity, be possible to achieve profits. For manufacturing companies, the procurement accounts for more than 50% of the cost structure, so by the company's senior management attention, in the past 20 years, procurement has been elevated to a professional level. In China, they found that the situation is completely different.

Decades of economic isolation from the outside world, China's industrial revolution began a strong, exponential growth in the domestic market and export market demand driven by China's industrial output value of the last 10 years achieved double-digit growth year after year. China's management did not feel the pressure to improve the value of procurement management is not surprising, because these growth is not achieved through the procurement management. Currently, most management is still to maintain a growth on the primary position, the company focus is on capacity building and product utility construction, procurement activities more remain at the tactical level, rather than strategic level. Interestingly, it is in the process of the pursuit of product availability, the management of major companies in China until recently to be attention to procurement management and the procurement activities to a strategic level. In the past few years, China's economy enjoyed exponential growth and the shortage of key supply markets in many sectors of the economy have become issues of concern, and prompted senior management to procurement management activities included in the company's top agenda.

? Lack of procurement of technology transfer channels

Chinese companies to the West and Japan are strong partners in learning, technology transfer over the past 15 years, the speed is unprecedented.閫氳繃璺ㄥ浗鍏徃鍦ㄤ腑鍥界殑鍚堣祫鍏徃锛屼腑鍥藉叕鍙稿湪鍒堕?銆佸伐绋嬨?钀ラ攢棰嗗煙瀛﹀埌浜嗗緢澶氱煡璇嗐? However, in China, the procurement is still a lack of skills, an area more. The best way to purchase technology transfer may be by Western companies to achieve the confidence of the Chinese market, and these Western companies in China's supply market, the Chinese method of managing the supply relationship is not particularly understand. They may first need to learn how to Chinese partners in the local business, rather than teaching a new procurement management.

? Prompted the company "release" difficulties in procurement activities

In the West, procurement through a very difficult time to get everyone's approval, was that with the marketing, finance, engineering and manufacturing and so on an equal footing, professional buyers gradually won the trust of the majority of managers. In the West, marketing manager, purchasing advertising, IT manager for the purchase of computer ... .... Not surprisingly, in China, the company uses a dedicated professional buyers release purchase management - including abandoned supplier selection and negotiation activities - is still considerable resistance. In addition, in Chinese history, procurement was a plant manager, general manager and control the area, they established a closer supplier relationships, and continued for many years. Require companies to these procurement responsibilities to the professional buyers and thus put the risk in the company, without regard to the relationship between the advantage has been established, which is China's managers are reluctant to have taken this step because professional procurement.

銆???绠$悊浜烘墠缂轰箯

Market pressure is small, inadequate technology transfer, and release associated with the procurement responsibilities of cultural communication difficulties, the result is so far neither the establishment of specialized procurement department, the management did not want to take the outstanding procurement activities as a professional gambling chips . In China, the general lack of procurement professionals create a vicious circle: the buyer is not enough skills to Zhenzheng distinguish the nature of the procurement and use it to Chongfen show's success procurement activities on the value, the results only based on their own understanding of the procurement management, does not deny the role of procurement activities, nor to strengthen procurement management activities.鍥犳锛屽湪瀹為檯鍟嗕笟杩愯涓紝涓撲笟鐨勯噰璐叕鍙告病鏈夎捣鍒颁竴涓钩绛夌殑鎴樼暐浼欎即搴旇璧峰埌鐨勪綔鐢ㄣ? This shows that companies are willing to begin to improve, the purchasing management there is still considerable room for improvement.







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Thursday, July 22, 2010

eHR Four Party Advisory Misunderstanding


If you pick up a foreign management books, chances are "performance management" of the subject, or may be "cost management" of the subject, no matter what, you can easily find a specific section: This book is the subject of a number of errors . Similarly, the concept of domestic enterprise information dissemination there are errors. Truth and falsehood, is often a pair of neighbors.

"Consulting Party" in the background appears

As the overall national trend of enterprise information from immaturity to maturity, more and more companies to make such a demand: I hope that in considering the application of eHR systems such as construction, to find a real understanding of information technology applications, understand the business, to overall long-term considerations for business staff and assistants. This brings "Party Consultation" service approach: In order to address enterprise "Party A" and the vendor, the implementation of company "B" asymmetric information between parties to promote the business and implementation services, communication and win-win situation, providing information Application of a series of customized training, IT planning, product selection, process control, assessment and other professional services to help enterprises effectively manage information technology to enhance and to obtain benefits.

However, the "Party consultation" understanding, there are also some errors, these errors make the information in the enterprise application and implementation of decisions seem hesitant and slow.

Myth # 1: Select Party advice is to choose Supervision Service.

Out of misunderstanding: the risk information is not ex post facto project evaluation, but in the whole process of project management and control. If the process is simple to implement supervision and guidance, it is difficult to effectively reduce the corporate and consulting company information asymmetry, information is difficult to truly reduce the risk of the application process.

Information system project risk not only from the project implementation process. If you choose at the outset a wrong software or a service company strength is not strong, then the Commissioner can not find even the best implementation of the project risk reduction. Therefore, more emphasis on consulting Party is the whole enterprise information applications staff roles, including project planning, requirements analysis, software and implementation partner selection, project implementation process of the auxiliary management, project evaluation after the results.

Before the start of the project, Party A consulting company's business needs through research and analysis conducted to determine the scope and objectives of the project. In addition, Party A consultation is also the enterprise, business, finance, project management, to analyze the overall assessment of the implementation of enterprise risk now facing where what should be strengthened and enhanced.

Implementation of the project, Party A consulting through project management tools, according to the International Project Management Association of generic project management method, the progress of implementation, risk management, communication management, document management, quality control and some links to assist management to reduce the enterprise Information risk of the implementation process to help companies improve their business and the implementation of the process of implementation of project management.

After implementation of the project, Party A will be combined with consultation before the start of the project, the project start the process, after the end of the project to assess the situation at all stages of project implementation results, and make optimal business direction and future implementation plans.

Shows that consultation will not be a simple Party is equivalent to the supervision of project implementation. Supervision in accordance with certain standards and norms to appraise and supervise the implementation of the company's work, but in the process of implementing information systems, whether international or domestic, as the construction industry as no set of quantifiable standards and norms for corporate and implementation of company information. Because the business reality is vastly different, there can not be generalized in the management of the standards. Therefore, Party A consultation process in the implementation of the project is not a judge's identity, but more of a company's staff, is to help business and implementation of a bridge company, to assist the parties in the project implementation to improve project management of both reduce project risk.

Myth # 2: enterprise information applications, such as eHR, the key lies in implementation of the company. Implementation of the company that is good, there is no need, please consult Party; implementation of the company that is not good, please consult Party did not help.

Out of misunderstanding: the successful application of enterprise information is the key enterprise itself, if successful hopes entirely on the implementation of the company, then the idea itself has already been to the progress of information buried a hidden danger.

The success of enterprise information, the most important is not the software's advanced nature and implementation of the company's service capabilities, but the company's own quality, experience and skills are sufficient to meet the management and improve the synchronization information. That is, when companies are successful in the ERP and anxiety, the uncertainty, the first should ask yourself the question: "enterprise itself ready yet?" This provision is comprised of companies within the right awareness and understanding of information technology extent, on the software industry and consulting knowledge of the degree of control over the project implementation capabilities. Throughout the successful application of information technology companies, the key point is the company for information technology and consulting industry with in-depth knowledge and understanding of, and companies begin to implement the project in the beginning, it is deeply aware of their implementation of the project owner.

But many business reality is that the understanding of information technology remain at the conceptual level only, not to mention the software and consulting industry knowledge, it is difficult to accurately evaluate an implementation of the company's "excellent" and "bad." Second, a "good implementation of the company" and a "good", a project is two totally different concepts. Although some people can be pledged to promote their successful implementation of the project 100%, but the reality is: Whether foreign consulting giant, or the domestic implementation of the biggest names in the unsuccessful case against them everywhere and really talk about success The case is rare. Thus, the implementation of the company's strength does not determine the success of a project, even more important is to implement the team's experience and efforts, and this is the need for strong project management skills to achieve. Objectively speaking, really have this ability and the implementation of the company is not many. Therefore, if the project before the start of the implementation process, the success of the project hopes entirely on the implementation of the company, which is in itself a worthy pay close attention to the perceived risk, have also been planted to the progress of information technology risks.

Misunderstanding 3: "Software Products + implementation of the company", so that we can ensure the success of enterprise information applications.

Out of the Myth: No one can ensure success when the project began, mature enterprises address risk, calmly, steadily success.

Application of information involving corporate departments, need to mobilize various resources within the enterprise. More importantly, the information technology application as a project, the implementation of the application process must also exist a variety of risks, the need for risk management. No one can ensure success when the project began, Party consultants have served as staff can not be out of this blank check, software companies, the implementation of the company can not give up the professional ethics to make unrealistic over-commitment to the project left a family troubles. The successful application of information technology is not "guarantee out" is the work by companies in place, the various properties of software products in place, the implementation of the services the company put in place "to do step by step out" of. Party consultation process in the service provider does not offer a specific product or implementation services sales agent, but through the ERP / CRM / SCM system applications such as long-term market tracking, extensive analysis and research of various products characteristics as well as the success or failure of the application of information technology industry case, according to the actual situation of enterprises to provide a neutral, impartial advice. Party consultants in the project team played the role of the enterprise's staff, this staff is not the role of the decision of the Party Advisory deliberately suppressed to help Party B, but as an experienced professional to add strength to the Party The project team, and provide appropriate advice to the Party clear project requirements, understanding of project risk, improve business awareness, promote consensus and by examining the implementation of the company's commitment to the importance and implementation of the project level, to promote enterprise side and the implementation of the reached win-win situation, to promote the success of the project.

Myth # 4: "Party Advisory abroad do not."

Avoiding Misunderstanding: relative to foreign enterprises, domestic enterprises also need to consult Party.

The country is a practice of information technology, first refer to the practice of history and experience abroad, this is a grain of truth, the development of foreign enterprises in the information ahead of our country, we can get out on the basis of reference to more foreign the way for Chinese enterprises. On the one hand, we see that the foreign presence APICS, Gartner and other information technology authority, for foreign enterprises to the development of information technology to provide a variety of expert services year round. Many of the world's top 500 companies and these institutions have established stable partnerships, the information authority to provide enterprises with a variety of expert services, information technology application from the analysis of trends, you have to plan the development of Enterprise Information and specific applications of choice, and so on.

Relative to foreign enterprises, the application of the domestic enterprise information maturity is generally low. Most companies especially in the corporate senior management, lack of information related to the application of knowledge and deep understanding. Therefore, enterprises need to apply for their own information to make clear the direction of choice, they often feel difficult. In addition, the domestic software vendors and service providers to implement the overall level of industry self-regulation needs to be improved. Objectively speaking, software and implementation services in the sales process, does have some over-promise, "the negotiation process with the customer information application in exaggerating the role and effect of raising expectations" and "in the implementation process deliberately to customer needs avoid, reduce expectations "in stark contrast. Domestic enterprises have already happened and many information technology failures, has provided a lot of negative materials and bitter lessons.

The Party consultation is to provide a range of business services to general staff. Party staff consultation service is a business management and information to promote the level of the process of continuously spiral. From a large part of it, including: assessment of the status of enterprise information, the application of information technology planning, business needs analysis, product selection, project management processes supporting the implementation of continuous improvement of after. Party counseling is not for business information in a specific project to provide a one-time services, but located in the business management and information technology applications to enhance the long-term strategic partner. Link from the specific operation, the Party can provide consultation for enterprises is a spectacular race Employee eHR, jeopardy, it can be a real number of users to purchase software LICENSE estimates; may be some protection software purchase contracts the terms of the agreed business interests, it can be a practical start in place of the ERP General Assembly; can be a consensus standard and easy to use project management project management IT platform, you can switch the program is a safe arrangement. Therefore, the Party consultation is a real consulting services, if only to stay in business literally explore the need for "Party A consultation", and do it "game of words" is no different.

After all, companies from the "Party consultation" full partners in service benefit.






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Wednesday, July 7, 2010

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Tuesday, June 29, 2010

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Friday, May 28, 2010

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Thursday, May 27, 2010

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